It's ITC vs Tata Group as Taj Mansingh sale process begins
Tata Group’s Indian Hotels and ITC have both submitted technical bids for Taj Mansingh on the first day itself to operate the landmark property on lease. Taj Mansingh had been leased to Tata Groups’ Indian Hotels in 1978 for a period of 33 years. The lease ended in 2011 and the NDMC was unable to revive the bids. After easing the eligibility criteria for the bidders, NDMC will identify shortlisted players by the September 25. The shortlisted players will then be allowed to participate in the e-auction on the September 28.
The iconic Taj Mansingh is set to go under the hammer once again.
After seven years, the New Delhi Municipal Council (NDMC) has set the date for the eauction of the property to the 28th of September.
Interested parties have to submit bids between the 12th to the 20th of September and sources say on day 1, the two most prominent players have thrown their hat in the ring.
CNBC-TV18 learns from sources that Tata Group’s Indian Hotels and ITC have both submitted technical bids for Taj Mansingh on the first day itself to operate the landmark property on lease.
"The two giants have been clashing ever since the auctions started and it’s clear that both are putting their best foot forward," said a source privy to the details of the auction.
“The Tata Group has been very competitive in the previous attempts and has a clear advantage having owned and operated Taj Mansingh since 1978. However, it will be a tough fight between the two," source said.
In all previous attempts of auction, both Indian Hotels and ITC had submitted bids but the auction itself failed to go through. It's unclear if the other hospitality giant Oberoi Group will be submitting its bid.
In an interview with CNBC-TV18 in May, Indian Hotels CEO had confirmed that the company will be bidding for Taj Mansingh and wants the prestigious property to remain in its arsenal.
A Complicated History
The iconic Taj Mansingh has been embroiled in controversy since 2011. The property was leased to Tata Groups’ Indian Hotels in 1978 for a period of 33 years.
While the lease ended, NDMC was unable to revive the auctions as it was tied up in a legal battle with Indian Hotels.
Since 2011, Indian Hotels has been operating Taj Mansingh with nine temporary extensions. The civic body, since 2011, has made 23 attempts to sell the property.
However, with strict eligibility criteria’s for the technical bids to go through, it has been unsuccessful.
Finally in August, NDMC decided to relax the eligibility criteria for bidders and reduced the minimum number of bids required for an auction to be done, from three to two.
In previous attempts, the auction has to be cancelled as it did not get the required number of bids.
“NDMC has relaxed the eligibility criteria to ensure that the auction goes through and is confident that it will be third time lucky," source added.
The Process
Interested operators can submit technical bids between from the 12 to 20 of September.
CNBC-TV18 learns that NDMC will identify shortlisted players by the September 25 based on the financial and technical specifications and if they meet the eligibility criteria’s outlined by NDMC.
Shortlisted players will then be allowed to participate in the e auction on the September 28.
First Published: Sept 12, 2018 10:11 PM IST
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